LIC is the largest insurance company in the country. A few years ago, the government launched its IPO, selling 3.5% of its stake. Currently, the government holds a 96.5% stake in LIC, but according to regulatory rules, it will have to further reduce its stake.
The government is moving towards reducing its stake in LIC (Life Insurance Corporation), the country's largest insurance company, once again. According to sources, initial discussions on this proposal have begun, and the process related to it could be finalized in the coming months. Currently, the government holds a 96.5 percent stake in LIC, while only 3.5 percent went to the public after the IPO in May 2022.
According to SEBI rules, the government will have to reduce its stake
According to the rules of the Securities and Exchange Board of India (SEBI), a public shareholding of 10 percent is necessary for any listed government company. Since LIC's IPO in 2022, only 3.5 percent of the stake has gone to the public so far. This means the government is required to sell an additional 6.5 percent stake before the 2027 deadline.
How much profit was made from the first IPO
LIC's IPO came at a price band of ₹902 to ₹949 in May 2022. The government raised approximately ₹21,000 crore through this issue. This has been India's largest IPO to date. However, LIC shares have been volatile since listing, and the share price has often fallen below the issue price.
Current share price and market cap
On Thursday, LIC's shares on the BSE fell 2.01 percent to close at ₹926.85. The company's market capitalization is currently approximately ₹5.85 lakh crore. Its 52-week high was ₹1,221.50, while the low was ₹715.35. That is, it is still trading around the issue price.
Latest account of LIC's earnings
Speaking of the financial front, some mixed signals are seen in LIC's premium income. In June 2025, individual premium income increased by 14.60 percent to reach ₹5,313 crore. Meanwhile, private insurance companies collected a total premium of ₹8,408 crore during this period. According to data released by the Life Insurance Council, private companies' premium income saw an increase of 12.12 percent.
How many policies were issued
LIC issued a total of 12.49 lakh individual insurance policies in June 2025. However, this number was 14.65 lakh in the same month last year. That is, a decline in the number of policies has been observed this year. Regarding group policies, the number decreased to 1,290 in June 2025, while it was 2,827 during the same period last year.
Decline in group premium income
While there has been an increase in individual premium income, a decline has been observed in group premium income. In June 2025, LIC's group premium income was ₹22,087 crore, which is about 7 percent less than last year. Meanwhile, private insurance companies' group premium income fell by 19 percent and decreased to ₹5,315 crore.
Total premium income also decreased
LIC's total premium income decreased by 3.43 percent to ₹27,395 crore in June 2025. Meanwhile, the total premium income of private insurance companies also decreased to ₹13,722 crore, which saw a decrease of 2.45 percent.
